..real buyers still absent

A negative ‘Greek’ tone over the weekend carried into European bourses down >1% and US open.  Numerous wire hits related to European sovereign issues started to peter out early morning (some positives on Ireland/ Greece /Italy ) and European markets reversed/ Euro rallied and US market followed to day highs by lunch hour.   Simply…that’s all folks!.  Nothing else and nothing more.  Although, wires headlines were positive, there was nothing substantial in respect to Tuesday’s ‘vote’ or anything new and/or significant on bailout package. Market traded sideways once Europe was closed.

All in, the same trends exist  - buyers are not going to work (volume was ‘holiday’ like )and market couldn’t push to day highs by close showing single stocks are still not of interest.   Still, some nibbling is taking place 1279-1249, so a constructive bottoming process continues seemingly.

It seems there is always something curtailing a broad sector move, today it was tech (SOX) related as far as important leadership sectors go.  DJIM’s 20% +EPS growth retail plays ( LULU, UA, FOSL>4-5%) were outperformers.

If market gets through Greek ‘vote’ safely (optimisim grew today/ PM securing support), focus hopefully will turn to FOMC /Bernanke press conference and afterwards a kick off to some earnings (FDX, ORCL types) to monitor corporate America for a change.

'Hope' rally

As been repeated for weeks, the market is a headline watching match for the fast traders.  At least this time it favoured trading to upside on what was really ‘empty’ macro headlines with some micro page turning.

It all started with Europe in the morning with some finance ministers ‘opinions’ (nothing more) raising optimism towards an agreement at the summit (July 20-21).  This enthusiasm was surely to be curbed by Merkel’s comments at the US market open, but market stayed giddy with Housing sale # surprise . In the afternoon another upside leg ensued as “Gang of 6’ debt ceiling proposal made the rounds. Once again, empty headlines with nothing concrete and possibly just more proposals amounting to nothing as usual.  All in, market ran on Macro ‘hope’, but likely rekindled some on earnings follow through from IBM, WYNN last night into the morning with PII,HOGS (disc. spending),OMC,KO and Hermes in Europe. 

In all, nothing macro resolved, but market tested the important 1295 successfully and it coincided with a better earnings picture emerging pushing market back over 20ma benchmark.  It’s too early to draw conclusions on earnings and/or turning away from political ‘macro’, but a rally is a rally and we’ll take it. Another hope is that many were flat footed today and come out to chase despite uncertainty abound. Remember, first leg is always short covering, especially as seen in SOX components today after just hitting fresh lows.

Shadowlist

Consumer - As alerted in morning for TIF FOSL LULU UA  all NCH’s, Hermes earnings put bid on high end, Adidas comments and potential end to NFL strike helped out UA. 

Earnings Q3 linked-   WYNN  post earnings succumbed to profit taking in regular trading hours, but it’s not going off list and will be a buy again.  This sell off possibility was noted to watch following EDU.  PII  added late June at 109 before running 11% to $122, once again put in a very healthy Q   (SHS  ran up as high 23%. Since pulled back, so keep eye out for EPS date).  http://www.djimstocks.com/djim-journal-1h-2011/a-few-names-to-list-into-q3piishsplcm.html.

IBM big catalyst earnings put bid on Mega caps, but also software Shadowlisted CRM  MSTR  to NCHs.

AMC, FTNT, RVBD  demonstrated high beta stocks ran or are running into earnings calls and if expectations are not handily beaten, you’ll be slapped down.